China’s largest domestic liner operator Zhonggu Logistics confirmed on 20 January that it plans to order a dozen 4,600TEU container ships, with options for six additional vessels.
[s2If is_user_logged_in()]In a filing to the Shanghai Stock Exchange, Zhonggu said that negotiations with several Chinese ship builders are ongoing, and deliveries are targeted from 2022 to 2024.
Zhonggu is said to have shortlisted the following yards for the vessels’ construction; CSSC Chengxi Shipyard, China Merchants Jinling Shipyard (Nanjing) Co., Nantong Xiangyu Shipbuilding & Offshore Engineering, Zhoushan Changhong International Shipyard and Yangzijiang Shipbuilding.
Explaining the newbuilding investment, Zhonggu’s management said, “We aim to build a highly economic and competitive container shipping fleet, continuously enhance our competitiveness, and consolidate its leading position in the domestic shipping market.
“The 4,600TEU newbuildings we plan to order will have improved efficiencies and reduced operating costs while optimising our fleet structure, enhancing the company’s profitability and offering sustainable shipping.”
Zhonggu said that it does not expect the total newbuilding price to exceed CNY4.5 billion (US$696.08 million). The company was listed on the bourse on 25 September 2020 after an initial public offering that raised CNY1.5 billion (US$214 million), of which CNY1.02 billion (US$144.9 million) will go towards vessel acquisitions. Despite its listed status, Zhonggu’s chairman, Lu Zongjun, retains control over the company.
While concentrating on Chinese coastal routes, Zhonggu is also active in shipping containers between China and Southeast Asia.
Zhonggu is now the 13th largest liner operator, with total capacity of 171,459TEU, comprising 35 owned ships and 81 chartered vessels. Nearly a dozen of Zhonggu’s ships are more than 10 years old, with the oldest being 1997-built.
Martina Li
Asia Correspondent[/s2If]
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